Investment in solar and wind projects across emerging markets could reach $356 billion by 2040, according to Zero Carbon Analytics. Renewables could account for 42% of electricity generation in emerging and developing economies by 2030, requiring an additional 3,251 GW of renewable capacity.
The cost of capital for large solar projects in these markets has been up to twice as high as in advanced economies. This is driven by perceived investment risks, potentially hindering access to funding for viable projects.
India’s renewable energy expansion offers lessons, with policy support, infrastructure development, and payment reforms contributing to its growth. African markets, however, face challenges including unreliable electricity demand and high perceived investment risks, impacting financial sustainability.
Source: Down To Earth